U.S. Hotel Performance in June 2009

Travel News Asia Latest Travel News Podcasts Monday, 27 July 2009

According to data from STR, the U.S. hotel industrys occupancy (in year-over-year measurements) fell 9.7% to end the month at 61.3%. The ADR dropped 9.9% to finish the month at US$96.77 while RevPAR for the month decreased 18.6% to finish at US$59.34.

Through the first six months of 2009, the industry experienced decreases in all three key metrics in year-over-year comparisons. Occupancy fell 10.9% to 54.6%, ADR decreased 8.7% to US$98.66, and RevPAR fell 18.7% to US$53.87.

While were still not seeing any bright light at the end of the tunnel, a few occasional flickers have begun to appear especially as it relates to lodging demand, said Mark Lomanno, president of STR. Even though June demand was still down considerably from last year, the level of decline was the best so far in 2009. That trend has continued through the first half of July, and were hopeful that it will continue for the remainder of the summer. However, the percentage declines in average daily room rates continue to be at all time lows.

Highlights from the Top 25 Markets include (in year-over-year comparisons):

Washington, D.C., was virtually flat in occupancy, decreasing 0.8% to 76.6%.

Four markets reported occupancy declines of more than 15%: Minneapolis-St. Paul, Minnesota-Wisconsin (-17.1% to 61.6%); Houston, Texas (-16.3% to 55.7%); Phoenix, Arizona (-15.7% to 45.4%); and Detroit, Michigan (-15.2% to 55%).

New Orleans, Louisiana, was the only market to increase in two of the three key metrics, rising 5.7% in ADR to US$116.29 and 1.1% in RevPAR to US$70.26.

New York, New York, reported the largest ADR decrease, falling 30.4% to US$199.08, followed by San Francisco/San Mateo, California, which was down 22.3% to US$126.87.

Washington, D.C., was the only market to experience a single-digit RevPAR decrease, which dropped 5.0% to US$113.65.

Six markets experienced RevPAR declines of more than 25%: New York (-34.9% to US$163.11); San Diego (-31.1% to US$84.55); San Francisco/San Mateo (-28.4% to US$97.65); Phoenix (-25.8% to US$36.60); Chicago, Illinois (-25.7% to US$79.30); and Minneapolis-St. Paul (-25.3% to US$56.63).

See other recent news regarding: Airlines, Aviation, Flights, First Class, Business Class, GDS, Miles, Hotels, Promotions, Spas, New Hotels, Visitor Arrivals, Cruises, Free Deals, STR, Performance, June 2009

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